Unknown. Final rule

5,402 words·~25 min read·/register/2019/06/05/2019-11715·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2019-06-05.xml --- 84 108 Wednesday, June 5, 2019 Contents Agriculture Agriculture Department See National Institute of Food and Agriculture Consumer Financial Protection Bureau of Consumer Financial Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26078-26079 2019-11644 2019-11654 Census Bureau Census Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: 2020 Census Post-Enumeration Survey Person Interview and Person Followup, 26066-26068 2019-11705 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 26107-26117 2019-11645 2019-11646 2019-11647 2019-11648 2019-11649 2019-11650 Centers Medicare Centers for Medicare & Medicaid Services NOTICES Meetings: Medicare Program; Annual Advisory Panel on Hospital Outpatient Payment; New Panel Members, 26117-26120 2019-11756 Civil Rights Civil Rights Commission NOTICES Meetings: Alaska Advisory Committee, 26065-26066 2019-11668 Coast Guard Coast Guard RULES Safety Zones: Annual Events in the Captain of the Port Buffalo Zone, 25993-25995 2019-11754 Milwaukee Harbor, Milwaukee, WI, 25995-25996 2019-11703 Commerce Commerce Department See Census Bureau See Foreign-Trade Zones Board See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office Comptroller Comptroller of the Currency RULES Liquidity Coverage Ratio Rule:

Treatment of Certain Municipal Obligations as High-Quality Liquid Assets, 25975-25978 2019-11715 Consumer Product Consumer Product Safety Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Safety Standard for Cigarette Lighters, 26079-26080 2019-11652 Defense Department Defense Department NOTICES Meetings: Defense Policy Board, 26080-26081 2019-11628 Education Department Education Department RULES Outdated Regulations--Expanding Opportunity through Quality Charter Schools Program--Grants for Credit Enhancement for Charter School Facilities, 25996-25998 2019-11727 NOTICES Applications for New Awards:

Educational Technology, Media, and Materials for Individuals with Disabilities--Stepping-up Technology Implementation, 26088-26095 2019-11641 Expanding Opportunity through Quality Charter Schools Program--Grants for Credit Enhancement for Charter School Facilities, 26095-26099 2019-11725 Project Prevent Grant Program, 26082-26088 2019-11677 Meetings: President's Board of Advisers on Historically Black Colleges and Universities, 26081-26082 2019-11730 Energy Department Energy Department See Federal Energy Regulatory Commission NOTICES Authorization to Export Liquefied Natural Gas:

Driftwood LNG, LLC, 26100 2019-11717 Port Arthur LNG, LLC, 26100 2019-11718 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: Alaska; Updates to Curtailment Program, 26019-26021 2019-11620 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Alaska; Interstate Transport Requirements for the 2015 Ozone Standard, 26041-26047 2019-11764 Clean Data Determination; Salt Lake City, Utah 2006 Fine Particulate Matter Standards Nonattainment Area, 26053-26057 2019-11702 Compliance Monitoring Usage;

Missouri, 26047-26048 2019-11546 Kentucky; Jefferson County Existing and New VOC Storage Vessels Rule Changes, 26030-26031 2019-11757 New Mexico; City of Albuquerque-Bernalillo County; New Source Review Preconstruction Permitting Program, 26057-26063 2019-11662 North Carolina; Large Internal Combustion Engines NO <sup>X</sup> Rule Changes, 26031-26041 2019-11758 Utah; Revisions to Nonattainment Permitting Regulations, 26049-26053 2019-11700 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Federal Implementation Plan for Oil and Natural Gas Well Production Facilities, Fort Berthold Indian Reservation (Mandan, Hidatsa, and Arikara Nation), ND, 26103-26104 2019-11699 Receipt of Requests to Voluntarily Cancel Certain Pesticide Registrations and Amend Registrations to Terminate Certain Uses, 26104-26106 2019-11675 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: BRP-Rotax GmbH and Co KG Engines, 25984-25986 2019-11739 Pilatus Aircraft Ltd.

Airplanes, 25982-25984 2019-11747 Special Conditions: Greenpoint Technologies, Inc., Boeing Model 787-8 Airplane; Dynamic Test Requirements for Single-Occupant, Side-Facing Seats with Airbag Devices in Shoulder Belts, 25978-25982 2019-11666 PROPOSED RULES Airworthiness Directives: Airbus SAS Airplanes, 26023-26025, 26027-26030 2019-11613 2019-11621 Piaggio Aero Industries S.p.A. Airplanes, 26025-26027 2019-11614 Federal Communications Federal Communications Commission PROPOSED RULES Assessment and Collection of Regulatory Fees for Fiscal Year 2019, 26234-26275 2019-10922 NOTICES Elimination of Obligation to File Broadcast Mid-Term Report, 26106 2019-11732 Meetings:

Technological Advisory Council, 26106 2019-11711 Federal Deposit Federal Deposit Insurance Corporation RULES Liquidity Coverage Ratio Rule: Treatment of Certain Municipal Obligations as High-Quality Liquid Assets, 25975-25978 2019-11715 Federal Emergency Federal Emergency Management Agency NOTICES Flood Hazard Determinations, 26133-26137 2019-11669 2019-11672 Flood Hazard Determinations; Proposals, 26132-26133, 26137 2019-11663 2019-11673 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 26101-26103 2019-11696 Filing:

Pacific Gas and Electric Co., 26100-26101 2019-11697 Records Governing Off-the-Record Communications, 26101 2019-11698 Federal Highway Federal Highway Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26175-26177 2019-11716 2019-11768 Federal Maritime Federal Maritime Commission NOTICES Agreements Filed, 26106-26107 2019-11722 Federal Railroad Federal Railroad Administration NOTICES Petition for Waiver of Compliance, 26177 2019-11634 Federal Reserve Federal Reserve System RULES Liquidity Coverage Ratio Rule:

Treatment of Certain Municipal Obligations as High-Quality Liquid Assets, 25975-25978 2019-11715 NOTICES Change in Bank Control: Acquisitions of Shares of a Bank or Bank Holding Company, 26107 2019-11733 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 26107 2019-11734 Fish Fish and Wildlife Service NOTICES Permit Applications: Endangered and Threatened Species; Recovery, 26145-26148 2019-11664 Foreign Endangered Species, 26144-26145 2019-11674 Food and Drug Food and Drug Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Exemptions From Substantial Equivalence Requirements for Tobacco Products, 26123-26125 2019-11658 Guidance for Industry and Food and Drug Administration Staff; Section 905(j) Reports: Demonstrating Substantial Equivalence for Tobacco Products, 26121-26123 2019-11657 Guidance: Establishing That a Tobacco Product Was Commercially Marketed in the United States as of February 15, 2007, 26120-26121 2019-11659 Foreign Assets Foreign Assets Control Office RULES Cuban Assets Control, 25992-25993 2019-11755 Foreign Trade Foreign-Trade Zones Board NOTICES Production Activity:

Catalent Pharma Solutions, LLC; Foreign-Trade Zone 193; Clearwater, FL, 26068 2019-11719 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health Homeland Homeland Security Department See Coast Guard See Federal Emergency Management Agency See U.S. Citizenship and Immigration Services See U.S. Customs and Border Protection Housing Housing and Urban Development Department NOTICES Proposed Changes to the Methodology Used for Estimating Fair Market Rents, 26141-26144 2019-11763 Industry Industry and Security Bureau RULES Restricting the Temporary Sojourn of Aircraft and Vessels to Cuba, 25986-25989 2019-11777 Interior Interior Department See Fish and Wildlife Service See Land Management Bureau See National Park Service Internal Revenue Internal Revenue Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 26178-26183 2019-11766 2019-11767 2019-11769 2019-11770 2019-11771 2019-11805 2019-11808 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Lined Paper Products from India, 26068-26069 2019-11713 Determination of Sales at Less Than Fair Value: Aluminum Wire and Cable from the People's Republic of China, 26069-26072 2019-11712 International Trade Com International Trade Commission NOTICES Complaint:

Certain Foodservice Equipment and Components Thereof, 26155-26156 2019-11706 Investigations; Determinations, Modifications, and Rulings, etc.: Raw Flexible Magnets From China and Taiwan, 26156-26157 2019-11748 Meetings; Sunshine Act, 26155 2019-11843 Labor Department Labor Department See Occupational Safety and Health Administration Land Land Management Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Grazing Management, 26148-26149 2019-11813 National Institute Food National Institute of Food and Agriculture NOTICES Solicitation of Commodity Board Topics and Contribution of Funding under the Agriculture and Food Research Initiative Competitive Grants Program, 26064-26065 2019-11723 National Institute National Institutes of Health NOTICES Meetings:

Center for Scientific Review, 26126 2019-11671 National Institute of Arthritis and Musculoskeletal and Skin Diseases, 26126-26127 2019-11665 National Institute on Drug Abuse, 26125-26126 2019-11667 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic: Snapper-Grouper Fishery of the South Atlantic; South Atlantic Yellowtail Snapper; Commercial Accountability Measure and Closure, 26022 2019-11721 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 26072, 26074 2019-11638 2019-11640 Agency Information Collection Activities; Proposals, Submissions, and Approvals: NMFS Implementation of International Trade Data System, 26075-26077 2019-11639 Meetings: Fisheries of the Gulf of Mexico and the South Atlantic; Southeast Data, Assessment, and Review, 26072-26073 2019-11735 Fisheries of the South Atlantic; Southeast Data, Assessment, and Review, 26073-26074 2019-11738 Mid-Atlantic Fishery Management Council, 26072 2019-11737 South Atlantic Fishery Management Council, 26073 2019-11736 Permit Application:

Marine Mammals; File No. 21321, 26074-26075 2019-11689 National Park National Park Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Gathering of Certain Plants or Plant Parts by Federally Recognized Indian Tribes for Traditional Purposes, 26154-26155 2019-11710 National Park Service Concessions, 26149-26153 2019-11707 Reporting and Recordkeeping for Snowcoaches and Snowmobiles, Yellowstone National Park, 26153-26154 2019-11709 National Register of Historic Places:

Pending Nominations and Related Actions, 26149 2019-11670 National Science National Science Foundation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26162-26163 2019-11720 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Export and Import of Nuclear Equipment and Material, 26170-26171 2019-11637 Exemption; Issuance: Southern Nuclear Operating Co.

Inc., Vogtle Electric Generating Plant Units 3 and 4, 26163-26168 2019-11688 Order: SHINE Medical Technologies, Inc., SHINE Medical Isotope Production Facility, 26168-26170 2019-11660 Occupational Safety Health Adm Occupational Safety and Health Administration NOTICES Application for Expansion of Recognition: MET Laboratories, Inc., 26159-26160 2019-11729 TUV Rheinland of North America, Inc., 26157-26159 2019-11740 Grant of Expansion of Recognition: TUV Rheinland of North America, Inc., 26160-26162 2019-11741 Overseas Overseas Private Investment Corporation NOTICES Meetings;

Sunshine Act, 26171 2019-11842 Patent Patent and Trademark Office NOTICES Request for Nominations: Patent and Trademark Public Advisory Committees, 26077-26078 2019-11724 Personnel Personnel Management Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Federal Employees Dental and Vision Insurance Program (FEDVIP) Enrollment System, 26171-26172 2019-11681 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances:

African-American Music Appreciation Month (Proc. 9897), 26311-26314 2019-11976 Great Outdoors Month (Proc. 9898), 26315-26316 2019-11977 National Caribbean-American Heritage Month (Proc. 9899), 26317-26318 2019-11980 National Homeownership Month (Proc. 9900), 26319-26320 2019-11984 National Ocean Month (Proc. 9901), 26321-26322 2019-11985 Trade: Trade Act of 1974; List of Beneficiary Developing Countries, Modifications (Proc. 9902), 26323-26329 2019-11986 Securities Securities and Exchange Commission NOTICES Applications for Deregistration, 26173-26174 2019-11742 Meetings;

Sunshine Act, 26172 2019-11934 Self-Regulatory Organizations; Proposed Rule Changes: Cboe BZX Exchange, Inc., 26172 2019-11643 New York Stock Exchange, LLC, 26188-26231 2019-11566 State Department State Department RULES Visas: Diversity Immigrants, 25989-25991 2019-11762 NOTICES Meetings: Cultural Property Advisory Committee, 26174-26175 2019-11679 Proposal to Extend Cultural Property Agreement: United States and El Salvador, 26174 2019-11678 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Railroad Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery, 26177-26178 2019-11701 Treasury Treasury Department See Comptroller of the Currency See Foreign Assets Control Office See Internal Revenue Service NOTICES Government Securities: Call for Large Position Reports, 26184 2019-11862 Meetings: Tribal Advisory Committee, 26183-26184 2019-11714 U.S. Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Employment Eligibility Verification, 26140-26141 2019-11642 Request for Fee Waiver, 26137-26140 2019-11744 Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application to Establish a Centralized Examination Station, 26127 2019-11684 Customs and Border Protection Recordkeeping Requirements, 26127-26128 2019-11686 Customs-Trade Partnership Against Terrorism and the Trusted Traveler Program, 26130-26131 2019-11685 Declaration for Free Entry of Unaccompanied Articles, 26131 2019-11687 Deferral of Duty on Large Yachts Imported for Sale, 26128-26129 2019-11682 Delivery Ticket, 26129-26130 2019-11683 U.S.

China U.S.-China Economic and Security Review Commission NOTICES Meetings: U.S.-China Economic and Security Review Commission, 26184-26185 2019-11693 Veteran Affairs Veterans Affairs Department RULES Urgent Care, 25998-26018 2019-11468 Veterans Community Care Program, 26278-26310 2019-11575 Separate Parts In This Issue Part II Securities and Exchange Commission, 26188-26231 2019-11566 Part III Federal Communications Commission, 26234-26275 2019-10922 Part IV Veterans Affairs Department, 26278-26310 2019-11575 Part V Presidential Documents, 26311-26329 2019-11976 2019-11977 2019-11980 2019-11984 2019-11985 2019-11986 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 84 108 Wednesday, June 5, 2019 Rules and Regulations DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Part 50 [Docket ID OCC-2018-0013] RIN 1557-AE36 FEDERAL RESERVE SYSTEM 12 CFR Part 249 [Docket No. R-1616] RIN 7100-AF10 FEDERAL DEPOSIT INSURANCE CORPORATION 12 CFR Part 329 RIN 3064-AE77 Liquidity Coverage Ratio Rule:

Treatment of Certain Municipal Obligations as High-Quality Liquid Assets AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Final rule. SUMMARY: The OCC, the Board, and the FDIC (collectively, the agencies) are jointly adopting as a final rule, without change, the August 31, 2018, interim final rule, which amended the agencies' liquidity coverage ratio

(LCR)rule to treat liquid and readily-marketable, investment grade municipal obligations as high-quality liquid assets. This treatment was mandated by section 403 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. DATES: The final rule is effective on July 5, 2019. FOR FURTHER INFORMATION CONTACT: *OCC:* Christopher McBride, Director, James Weinberger, Technical Expert, or Ang Middleton, Bank Examiner (Risk Specialist),

(202)649-6360, Treasury & Market Risk Policy; David Stankiewicz, Special Counsel, Lee Walzer, Counsel, Henry Barkhausen, Counsel, or Daniel Perez, Senior Attorney,

(202)649-5490, Chief Counsel's Office; or for persons who are deaf or hearing-impaired, TTY,

(202)649-5597, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. *Board:* Constance Horsley, Deputy Associate Director,

(202)452-5239, Peter Clifford, Manager,

(202)785-6057, J. Kevin Littler, Lead Financial Institution Policy Analyst,

(202)475-6677, or Christopher Powell, Senior Financial Institution Policy Analyst,

(202)452-3442, Division of Banking Supervision and Regulation; Laurie Schaffer, Associate General Counsel,

(202)452-2272, Benjamin W. McDonough, Assistant General Counsel,

(202)452-2036, Steve Bowne, Counsel,

(202)452-3900, Laura Bain, Senior Attorney,

(202)736-5546, or Jeffery Zhang, Attorney,

(202)736-1968, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. For the hearing impaired only, Telecommunication Device for the Deaf (TDD),

(202)263-4869, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW, Washington, DC 20551. *FDIC:* Bobby R. Bean, Associate Director,

(202)898-6705, Michael E. Spencer, Chief,

(202)898-7041, Eric W. Schatten, Senior Policy Analyst,

(202)898-7063, Andrew D. Carayiannis, Senior Policy Analyst,

(202)898-6692, *CapitalMarkets@FDIC.gov,* Capital Markets Branch, Division of Risk Management Supervision; Suzanne J. Dawley, Counsel,

(202)898-6509, Gregory S. Feder, Counsel,

(202)898-8724, or Andrew B. Williams, II, Counsel,

(202)898-3591, Supervision and Corporate Operations Branch, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. For the hearing impaired only, Telecommunication Device for the Deaf (TDD),

(800)925-4618. SUPPLEMENTARY INFORMATION: I. Background The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation

(FDIC)(collectively, the agencies) adopted the liquidity coverage ratio

(LCR)rule 1 in 2014. The LCR rule established a quantitative liquidity requirement that is designed to promote the short-term resilience of the liquidity risk profile of large and internationally active banking organizations. The intent of the agencies in issuing the LCR rule was to improve the U.S. banking sector's ability to absorb shocks arising from financial and economic stress and the measurement and management of liquidity risk. 2 The LCR rule generally applies to a bank holding company, savings and loan holding company, or depository institution if:

(1)It has total consolidated assets equal to $250 billion or more;

(2)it has total consolidated on-balance sheet foreign exposure equal to $10 billion or more; or

(3)it is a depository institution with total consolidated assets equal to $10 billion or more and is a consolidated subsidiary of a firm that is subject to the LCR rule (each, a covered company). 3 Covered companies generally must maintain an amount of high-quality liquid assets

(HQLA)equal to or greater than their projected total net cash outflows over a prospective 30 calendar-day period. The LCR rule defines three categories of HQLA—level 1, level 2A, and level 2B liquid assets—and sets forth qualifying criteria for HQLA and limitations for an asset's inclusion in a banking organization's HQLA amount. 1 79 FR 61440 (Oct. 10, 2014), codified at 12 CFR part 50 (OCC), 12 CFR part 249 (Board), and 12 CFR part 329 (FDIC). 2 *Id.* 3 *See* section 1 of the LCR rule. On December 21, 2018, the agencies invited comment on a proposed rule that would revise the framework for determining the applicability of the standardized liquidity requirements, including the LCR rule, for U.S. banking organizations. *See* Proposed Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements, 83 FR 66024 (Dec. 21, 2018). On May 24, 2019, the agencies published for comment a proposed rule to apply standardized liquidity requirements to foreign banking organizations with respect to their combined U.S. operations. *See* Proposed Changes to Applicability Thresholds for Regulatory Capital Requirements for Certain U.S. Subsidiaries of Foreign Banking Organizations and Application of Liquidity Requirements for Foreign Banking Organizations, Certain U.S. Depository Institution Holding Companies, and Certain Depository Institution Subsidiaries, 84 FR 24296 (May 24, 2019). These proposed rulemakings, if adopted, would revise the scope of application of the LCR rule. In 2016, the Board amended its LCR rule to include certain U.S. municipal securities as HQLA, subject to certain limitations (2016 Amendments). 4 The 2016 Amendments permitted U.S. municipal securities to qualify as level 2B liquid assets if they were:

(1)General obligation securities of public sector entities (that is, a state, local authority, or other governmental subdivision below the U.S. sovereign entity level); 5

(2)investment grade under 12 CFR part 1 as of the calculation date;

(3)issued or guaranteed by a public sector entity whose obligations have a proven record as a reliable source of liquidity in repurchase or sales markets during stressed market conditions; and

(4)not be an obligation of a financial sector entity or a financial sector entity's consolidated subsidiary (unless only guaranteed by a financial sector entity or its consolidated subsidiary and otherwise eligible). The 2016 Amendments limited the inclusion of general obligation securities in the HQLA amount to 5 percent of the covered company's total HQLA amount. The 2016 Amendments also limited the inclusion of general obligation securities of any single public sector entity to two times the average daily trading volume during the previous four quarters of all general obligation securities issued by that public sector entity. 4 81 FR 21223 (Apr. 11, 2016). 5 The 2016 Amendments defined a general obligation as a bond or similar obligation that is backed by the full faith and credit of a public sector entity. 12 CFR 249.20(c)(2). The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) was enacted on May 24, 2018. 6 Section 403 of the EGRRCPA amended section 18 of the Federal Deposit Insurance Act 7 and requires the agencies—for purposes of the LCR rule and any other regulation that incorporates a definition of the term “high-quality liquid asset” or another substantially similar term—to treat a municipal obligation as HQLA that is a level 2B liquid asset if that obligation is, as of the calculation date, liquid and readily-marketable and investment grade. Section 403 defines “municipal obligation” as an obligation of a State or any political subdivision thereof; or any agency or instrumentality of a State or any political subdivision thereof. Section 403 defines “liquid and readily-marketable” as having the meaning given the term in 12 CFR 249.3 or any successor thereto. Section 403 defines “investment grade” as having the meaning given the term in 12 CFR 1.2 or any successor thereto. 6 Public Law 115-174, 132 Stat. 1296-1368 (2018). 7 12 U.S.C. 1828(aa). II. Interim Final Rule On August 31, 2018, the agencies published an interim final rule amending the agencies' LCR rule to implement section 403 of the EGRRCPA and soliciting public comment. 8 8 83 FR 44451 (Aug. 31, 2018). The interim final rule added a definition to the agencies' rule for the term “municipal obligations,” which, consistent with the EGRRCPA, means an obligation of

(1)a state or any political subdivision thereof or

(2)any agency or instrumentality of a state or any political subdivision thereof. In addition, the interim final rule amended the HQLA criteria with respect to level 2B liquid assets by adding municipal obligations that, as of the LCR calculation date, are both liquid and readily-marketable and investment grade (under 12 CFR part 1) 9 to the list of assets that are eligible for treatment as level 2B liquid assets. 10 9 The OCC's definition of “investment grade” under 12 CFR 1.2 provides that “[i]nvestment grade means the issuer of a security has an adequate capacity to meet financial commitments under the security for the projected life of the asset or exposure. An issuer has an adequate capacity to meet financial commitments if the risk of default by the obligor is low and the full and timely repayment of principal and interest is expected.” 12 CFR 1.2. 10 12 CFR 50.20 (OCC); 12 CFR 249.20 (Board); 12 CFR 329.20 (FDIC). Consistent with section 403 of the EGRRCPA, the interim final rule also amended the definition of “liquid and readily-marketable” in the FDIC's and OCC's rules so that the term has the same meaning given to it under 12 CFR 249.3 of the Board's rule. 11 11 Under the Board's rule, a liquid and readily-marketable security is a security that is traded in an active secondary market with:

(1)More than two committed market makers;

(2)a large number of non-market maker participants on both the buying and selling sides of transactions;

(3)timely and observable market prices; and

(4)a high trading volume. 12 CFR 249.3. The interim final rule also rescinded the Board's 2016 Amendments so that municipal obligations under the Board's rule are treated consistently with section 403 of the EGRRCPA. III. Comments Received The agencies received nine comment letters addressing the interim final rule, including letters from trade associations, private sector enterprises, and one individual. Commenters generally expressed support for the inclusion of certain municipal obligations as HQLA and the agencies' implementation of section 403 of the EGRRCPA through the interim final rule. Many commenters asserted that municipal obligations were a suitable asset class for HQLA eligibility, with qualities consistent with other level 2B liquid assets, and that the interim final rule effectively satisfied the underlying intent of section 403 of the EGRRCPA. Some commenters suggested additional changes to the LCR rule for the agencies' consideration, including changes that were not addressed or affected by section 403 of the EGRRCPA. Comments Regarding Eligibility and Treatment of Municipal Obligations as HQLA Some commenters requested that the agencies treat municipal obligations in the same manner as other asset types includable as HQLA, without imposing additional limitations, such as those in the Board's 2016 Amendments. 12 12 For example, the 2016 Amendments limited the inclusion of municipal obligations in a Board-supervised institution's HQLA amount to 5 percent of the institution's total HQLA amount and limited the inclusion as eligible HQLA of municipal obligations of any single issuer to two times the average daily trading volume of all general obligation securities of the issuer over the previous four quarters. Other commenters argued that municipal obligations should not be subject to certain requirements and limitations applicable to HQLA, such as the haircuts and composition limits generally applicable to level 2B liquid assets. 13 Alternatively, commenters argued that these requirements should be liberalized with respect to municipal obligations. Another commenter recommended that the definition of liquid and readily-marketable should be revised, because it would exclude from HQLA certain municipal obligation securities with a liquidity risk profile similar to other assets that currently qualify as level 2B liquid assets. 13 *See* 12 CFR 50.21 (OCC), 12 CFR 249.21 (Board), and 12 CFR 329.21 (FDIC). Section 403 requires the agencies to treat a municipal obligation as a level 2B liquid asset if the obligation, as of the calculation date, is liquid and readily-marketable and investment grade. The interim final rule implemented section 403, imposing only those restrictions on municipal obligations that also apply to other level 2B liquid assets. 14 In addition, the interim final rule defined “liquid and readily-marketable” as having the meaning given the term in 12 CFR 249.3, as specifically mandated by section 403. Accordingly, the agencies believe that it would not be appropriate to make changes to the restrictions applicable to municipal obligations as level 2B liquid assets or the definition of “liquid and readily-marketable” in this final rule. 14 As part of the interim final rule, the Board rescinded the 2016 Amendments. Comments Regarding Broader Changes to the LCR Rule Several commenters, while supportive of the interim final rule, requested broad changes to the LCR rule beyond the treatment of municipal obligations as HQLA. For example, certain commenters argued that the agencies should tailor the application of the LCR rule based on the risk profile, operations, and complexity of the banking organization. These commenters argued that the current applicability thresholds are outdated and overly reliant on fixed asset thresholds. These commenters also urged the agencies to eliminate the $10 billion foreign exposure threshold as an interim measure. One commenter recommended that the agencies revise the scope of assets recognized as HQLA. The commenter also requested that the agencies review the LCR rule's inflow and outflow assumptions, including its stability assumptions. This commenter also recommended revising the LCR rule to better reflect market realities, including by revising maturity assumptions, the treatment of retail trusts, and the definition of operational deposits. This commenter also recommended that the agencies either “remove or increase the lag time” associated with LCR disclosures. The agencies are not adopting these broader proposed changes in this final rule. 15 The interim final rule was issued to implement section 403 of the EGRRCPA, and broader revisions to the LCR rule fall outside of the scope of the changes that the agencies sought comment on in the interim final rule. 15 The agencies have proposed revisions to the LCR rule in separate rulemakings that would address certain comments regarding the scope and applicability thresholds. *See supra* n. 3. IV. Description of the Final Rule For the reasons described above, the agencies are adopting the interim final rule as final without change. The interim final rule's changes to the LCR rule provided covered companies greater flexibility in meeting the LCR rule's minimum requirements by expanding the types of assets that are eligible as HQLA. For FDIC- and OCC-regulated institutions, the interim final rule's changes marked the first time that such institution could treat any municipal obligations as HQLA. For Board-regulated institutions, those changes broadened the types of municipal obligations that could be included as HQLA. In particular, because the Board rescinded the 2016 Amendments as part of the interim final rule, municipal obligations were no longer required to be general obligation securities and, as a result, many issuances of revenue bonds could qualify as municipal obligations. In adopting the interim final rule as final without change, the final rule does not impact the changes described above. This final rule does not otherwise affect which assets can count as HQLA under the LCR rule. V. Regulatory Analysis A. Administrative Procedure Act and Effective Date The Administrative Procedure Act

(APA)generally requires that a final rule be published in the **Federal Register** no less than 30 days before its effective date. 16 Therefore, the final rule will become effective on July 5, 2019. The interim final rule will remain in effect until the final rule becomes effective. 16 5 U.S.C. 553(d). B. Riegle Community Development and Regulatory Improvement Act Pursuant to section 302(a) of the Riegle Community Development and Regulatory Improvement Act (RCDRIA), 17 in determining the effective date and administrative compliance requirements for a new regulation that imposes additional reporting, disclosure, or other requirements on insured depository institutions (IDIs), each federal banking agency must consider any administrative burdens that such regulation would place on depository institutions and the benefits of such regulation. In addition, section 302(b) of the RCDRIA 18 requires such new regulation to take effect on the first day of a calendar quarter that begins on or after the date on which the regulations are published in final form, with certain exceptions, including for good cause. The RCDRIA does not apply to the final rule because the rule does not impose any additional reporting, disclosures, or other new requirements on IDIs. 17 12 U.S.C. 4802(a). 18 12 U.S.C. 4802(b). C. Regulatory Flexibility Act The Regulatory Flexibility Act

(RFA)does not apply to a rulemaking when a general notice of proposed rulemaking is not required. 19 Because the agencies previously determined that it was unnecessary to publish a general notice of proposed rulemaking for the interim final rule, the RFA's requirements relating to an initial and final regulatory flexibility analysis do not apply to this final rule. Nonetheless, the agencies believe that, because size thresholds for covered companies under the final rule exceed the size limits of “small entities” as defined in section 601(6) of the RFA, small entities are not affected by the final rule. 20 Thus, the final rule does not have a significant economic impact on a substantial number of small entities. 19 5 U.S.C. 603, 604. 20 Under regulations issued by the Small Business Administration, a small entity includes a depository institution, bank holding company, or savings and loan holding company with total assets of $550 million or less and trust companies with total assets of $38.5 million or less. D. Paperwork Reduction Act of 1995 The Paperwork Reduction Act of 1995 21 states that no agency may conduct or sponsor, nor is the respondent required to respond to, an information collection unless it displays a currently valid Office of Management and Budget

(OMB)control number. The agencies have determined that this final rule does not create any new, or revise any existing, collections of information pursuant to the Paperwork Reduction Act and, therefore, no information collection request submission needs to be made to the OMB. 21 44 U.S.C. 3501-3521. E. Use of Plain Language Section 722 of the Gramm-Leach Bliley Act 22 requires the agencies to use plain language in all proposed and final rules published after January 1, 2000. Having received no comments with respect to making the interim final rule easier to understand, the agencies are adopting the final rule without change. 22 Public Law 106-102, section 722, 113 Stat. 1338, 1471 (1999). F. Unfunded Mandates Reform Act of 1995 Consistent with section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded Mandates Act), 23 the OCC prepares an impact statement before promulgating any final rule for which a general notice of proposed rulemaking was published. Because the OCC did not publish a general notice of proposed rulemaking for the reasons described above in paragraph A of this section, the OCC has not prepared an impact statement for the final rule under the Unfunded Mandates Act. 23 2 U.S.C. 1532. List of Subjects 12 CFR Part 50 Administrative practice and procedure, Banks, Banking, Liquidity, Reporting and recordkeeping requirements, Savings associations. 12 CFR Part 249 Administrative practice and procedure, Banks, Banking, Federal Reserve System, Holding companies, Liquidity, Reporting and recordkeeping requirements. 12 CFR Part 329 Administrative practice and procedure, Banks, Banking, Federal Deposit Insurance Corporation, Reporting and recordkeeping requirements. DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Chapter I PART 50—LIQUIDITY RISK MEASUREMENT STANDARDS The interim final rule amending 12 CFR part 50 of chapter I, title 12 of the Code of Federal Regulations, which was published at 83 FR 44451 on August 31, 2018, is adopted as a final rule without change. Federal Reserve System 12 CFR Chapter II PART 249—LIQUIDITY RISK MEASUREMENT STANDARDS (REGULATION WW) The interim final rule amending 12 CFR part 249 of chapter II, title 12 of the Code of Federal Regulations, which was published at 83 FR 44451 on August 31, 2018, is adopted as a final rule without change. Federal Deposit Insurance Corporation 12 CFR Chapter III PART 329—LIQUIDITY RISK STANDARDS The interim final rule amending 12 CFR part 329 of chapter III, title 12 of the Code of Federal Regulations, which was published at 83 FR 44451 on August 31, 2018, is adopted as a final rule without change. Dated: May 20, 2019. Joseph M. Otting, Comptroller of the Currency. By order of the Board of Governors of the Federal Reserve System, May 28, 2019. Ann E. Misback, Secretary of the Board. Federal Deposit Insurance Corporation. By order of the Board of Directors. Dated at Washington, DC, on May 28, 2019. Valerie J. Best, Assistant Executive Secretary. [FR Doc. 2019-11715 Filed 6-4-19; 8:45 am]

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